In 2021, the Austrian Financial Market Authority (FMA) published 112 investor warnings. This is a third more – or in absolute terms 28 more investor warnings – than were published in 2020. A large proportion of the warnings (81) related to trading platforms that were active in a fraudulent manner, on which services are offered that are associated with financial products like binary options and contracts for difference (CFDs) as well as cryptoassets. More than 70 per cent of the providers about whom the FMA published warning, also offered cryptoassets in addition to traditional financial products. As was also the case in previous years, during the year just past there were also a few cases in which “clone firms” were falsely claiming to be licensed entities.
“We recommend investors check the FMA website prior to investing, and to check whether the entity in question holds a licence granted by the FMA, as well as whether the FMA has already issued a warning about the entity,” remarked the FMA’s Executive Directors, Helmut Ettl and Eduard Müller. Furthermore, it is also advisable to conduct some research on the Internet prior to committing to an investment to see whether there also people who have already lost money warning about the entity.
An investor warning is then published where a person has given rise to do so, and where public information is necessary. Furthermore, such publications muse also be proportionate with regard to potential detriments for the affected party. The content of such a warning is the information that a named natural or legal person is not authorised to provide specific activities requiring a licence. Investor warnings are published in the Official Gazette of the Wiener Zeitung (Amtsblatt zur Wiener Zeitung) as well as on the FMA website.
Further information can be found on the FMA website in the Company Database as well as the Investor Warnings.
Journalists may address further enquiries to:
Lucija Stjepanovic, BSc.
+43 676 88 249 608